Congress inched closer last week to passing a bill that would funnel more than $80 billion into a direct federal loan program for college students and essentially cut out private lenders such as Sallie Mae.

Although Sallie Mae — officially known as SLM Corp. — didn’t get the result it wanted out of the House, the lawmakers who sided with Sallie Mae have collected more money, on average, than those who voted for the bill, the Center for Responsive Politics has found.

SLM, which was formerly a government-sponsored entity, dumps cash into politics, spending $2.1 million on lobbying during the first half of this year and giving the current crop of legislators $2.9 million since 1989 (including contributions to both candidate committees and leadership PACs).

The 171 lawmakers who voted against the direct federal loan program have during the past 20 years collected $2,986 more, on average, from SLM Corp. than the 253 who voted for the bill ($6,880 versus $3,894). The bill is formally known as the Student Aid and Fiscal Responsibility Act.

The most notable discrepancy in campaign contributions from SLM Corp. is to House Democrats. The four Democrats who opposed the legislation have brought in $32,721 more, on average, from SLM Corp. than the 247 who helped pass the bill ($36,650 versus $3,929).

Two of the Democrats to vote in the minority, Reps. Paul Kanjorksi of Pennsylvania and Allen Boyd of Florida, are among the top members of the House — including members of both parties — to benefit from SLM Corp. cash. The company has given Kanjorski $95,900 since 1989, more than all other lawmakers but two. Boyd comes in at No. 7, having collected $42,200 since he was elected in 1996.

“Currently, students have the option to choose between private and public lenders, and I am a firm believer that such choice and competition among lenders is the best proven method for reducing costs and improving services,” Kanjorski said in a statement after the vote. “By omitting private lenders, we would create a monopoly within the federal government regarding student loans.

The top recipients of Sallie Mae cash are both Republicans who support the current Federal Family Education Loan Program (FFELP). House Minority Leader John Boehner of Ohio has brought in $259,700 since 1989, while Rep. Howard “Buck” McKeon of California has collected $233,000 since he was elected in 1992. SLM Corp. is McKeon’s No. 1 donor, while the private lender ranks among Boehner’s top 20 donors over time.

Here are the top recipients of SLM Corp. cash since 1989, including contributions to legislators’ leadership PACs and candidate committees:

Name

Total

Vote

Rep. John Boehner (R-Ohio)

$259,720

No

Rep. Howard P (Buck) Mckeon (R-Calif)

$233,000

No

Rep. Paul E Kanjorski (D-Pa)

$95,899

No

Rep. Bart Gordon (D-Tenn)

$57,950

Yes

Rep. Steny H Hoyer (D-Md)

$52,000

Yes

Rep. Robert E Andrews (D-NJ)

$43,250

Yes

Rep. Allen Boyd (D-Fla)

$42,200

No

Rep. Lincoln Davis (D-Tenn)

$41,150

Yes

Rep. Chet Edwards (D-Texas)

$38,250

Yes

Rep. George Miller (D-Calif)

$33,810

Yes

Rep. Roy Blunt (R-Mo)

$32,500

No

Rep. Jim Matheson (D-Utah)

$30,000

Yes

Rep. Eric Cantor (R-Va)

$29,317

No

Rep. Tom Price (R-Ga)

$29,000

No

Rep. Patrick McHenry (R-NC)

$28,000

No

Download a spreadsheet of contributions from SLM Corp. to all current lawmakers here:

The 167 Republicans who voted against the bill have collected $3,709 more, on average, than the six who voted with most Democrats in support of the legislation ($6,167 versus $2,458).

Among the GOP lawmakers to vote against the majority of their colleagues, Rep. Tom Petri of Wisconsin has collected the most money from SLM Corp. at $12,570 since 1989. This means 40 other members of the House have brought in more money from SLM than Petri over the years.

“I rise in support of the Student Aid and Fiscal Responsibility Act which eliminates the Federal Family Education Loan Program [FFELP] and moves origination of all federal student loans to the Direct Loan Program,” Petri said on the House floor last Wednesday. “Over the years, FFELP has proven to be fraught with scandal and an unreliable source of funds, and it costs billions of dollars more for the taxpayers.”

SLM Corp. and other private lenders have tried to convince the government to keep FFELP program, arguing that eliminating subsidies to lenders would erode consumer choice and result in the loss of thousands of jobs. SLM currently collects big profits on Treasury-backed loans.

But as Capital Eyereported in July, Sallie Mae and two other student-loan providers have been a little more lax in their opposition to direct-loan programs, having won a $550 billion deal with the Department of Education to service direct loans.

Although current House Republicans have brought in more, on average, than their counterparts ($5,869 versus $4,478), SLM Corp. has largely divided its contributions between the two parties, giving 52 percent of its total $2.2 million since 1989 to current House Democrats.

Any attempt by SLM to use campaign contributions to sway Rep. George Miller (D-Calif.), chairman of the House Education and Labor Committee and writer of the Student Aid and Fiscal Responsibility Act, clearly hasn’t worked. Miller has collected $33,810 from the lender since 1989 — more than all but nine other members of the House.

President Barack Obama has been a staunch supporter of the direct-loan program and brought in a mere $7,900 from SLM Corp. during his 2008 presidential bid.

The Senate is expected to vote on the legislation before the end of the month.

Media Contact

Viveca Novak
(202) 354-0111
press@crp.org

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